To link to the entire object, paste this link in email, IM or documentTo embed the entire object, paste this HTML in websiteTo link to this page, paste this link in email, IM or documentTo embed this page, paste this HTML in website

Executive and Legislative documents laid before the General Assembly of North-Carolina [1868; 1869]

4 Document No. 24. [Session
or any other person, and not one cent of prolit has accrued to
nie or my clerks from suspension of payment at the Treasury.
II. PENITENTIAKY BONDS.
My action in regard to the issue of $100,000 State bonds on
the order of the Penitentiary Committee, approved by the
Governor, has been criticised as unv^-arranted by law. In this
matter I acted as has been the invariable practice since our
bonds tell below par, about 1856. The Western North Caro-lina
Rail Koad Company has obtained from the State millions
of dollars oi hondi^ of various times since 1856 in the same
wav. So did the Wilmington, Charlotte and Euthei'ford Hail
Road Company. The Atlantic and North Carolina Rail Road
Company obtained bonds under the law of 1856, in aid of that
coi-poration in a similar manner. The Insane Asylum re-sorted
to the same process. So did the Western Rail Road
Company. Others might be mentioned. According to the
letter of the law, in these cases the Treasurer was ordered to
sell the londs at not less than par and out of the proceeds ^^«y
iiioney to the corporations. As the bonds were U7ider-psiV, the
corporations entitled to the money always bid for and ob-tained
the bonds, and then sold them to best advantage. So
under the Funding Act of March 10th, 1866, the Treasurer
was ordered to sell bonds and with the proceeds of the eale
pay off the past due coupons, Frctctically^ a mere exchange
\va3 made of coupons for bonds, in other words the holders of
covj)ons 2)ald> for the londs. Just so in the Penitentiary pur-chase,
the parties selling to the Committee bought bonds at
par. I had no right to encpiire, neither did I know, whether
the purchase was a good one or not. As this has always been
the practice of this Department, sanctioned by all the General
Assemblies since 1856, known among all intelligent men and
never complained of, surely I was authorized in acting in ac-cordance
with this settled practice unless the Legislature hati
otherwise directed.

4 Document No. 24. [Session
or any other person, and not one cent of prolit has accrued to
nie or my clerks from suspension of payment at the Treasury.
II. PENITENTIAKY BONDS.
My action in regard to the issue of $100,000 State bonds on
the order of the Penitentiary Committee, approved by the
Governor, has been criticised as unv^-arranted by law. In this
matter I acted as has been the invariable practice since our
bonds tell below par, about 1856. The Western North Caro-lina
Rail Koad Company has obtained from the State millions
of dollars oi hondi^ of various times since 1856 in the same
wav. So did the Wilmington, Charlotte and Euthei'ford Hail
Road Company. The Atlantic and North Carolina Rail Road
Company obtained bonds under the law of 1856, in aid of that
coi-poration in a similar manner. The Insane Asylum re-sorted
to the same process. So did the Western Rail Road
Company. Others might be mentioned. According to the
letter of the law, in these cases the Treasurer was ordered to
sell the londs at not less than par and out of the proceeds ^^«y
iiioney to the corporations. As the bonds were U7ider-psiV, the
corporations entitled to the money always bid for and ob-tained
the bonds, and then sold them to best advantage. So
under the Funding Act of March 10th, 1866, the Treasurer
was ordered to sell bonds and with the proceeds of the eale
pay off the past due coupons, Frctctically^ a mere exchange
\va3 made of coupons for bonds, in other words the holders of
covj)ons 2)ald> for the londs. Just so in the Penitentiary pur-chase,
the parties selling to the Committee bought bonds at
par. I had no right to encpiire, neither did I know, whether
the purchase was a good one or not. As this has always been
the practice of this Department, sanctioned by all the General
Assemblies since 1856, known among all intelligent men and
never complained of, surely I was authorized in acting in ac-cordance
with this settled practice unless the Legislature hati
otherwise directed.